Reading:
An investigation into how forced-labor-produced cotton and cotton-based goods from the Uyghur Region wend their way into international supply chains. Based on international trade and customs data, the report concludes that at the same time as Xinjiang cotton has come to be associated with human rights abuses and to be considered high risk for international brands, China's cotton industry has benefited from an export strategy that obscures cotton's origin in the Uyghur Region.
(First published 1 March 2020) The Chinese government has facilitated the mass transfer of Uyghur and other ethnic minority citizens from the far west region of Xinjiang to factories across the country. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of at least 82 well-known global brands in the technology, clothing and automotive sectors, including Apple, BMW, Gap, Huawei, Nike, Samsung, Sony and Volkswagen.
Early last year, amid mounting reports of forced labor and human rights abuses in China’s Xinjiang Uyghur Autonomous Region (XUAR), U.S. outdoor apparel maker Patagonia resolved to stop sourcing cotton from China. From April 2020 on, the brand’s global suppliers had to vet and eliminate any links to the world’s largest cotton producer. The decision wasn’t easy. China accounts for roughly 20% of global cotton supply, and Xinjiang produces some of the highest-grade cotton in the world.
Last month, Chinese cotton yarn maker Huafu Fashion sent a warning to investors. “Multiple American brands have canceled orders,” Huafu said in a Shenzhen stock exchange filing, citing U.S. sanctions. “It’s brought negative effects to the company.” Huafu — which said it lost at least $54.3 million last year vs. a net profit of $62.5 million in 2019 — is one of the few suppliers to publicly acknowledge the sanctions’ effects. But thousands of companies worldwide are affected after the United States blacklisted 87 percent of China’s cotton crop — one-fifth of the world’s supply — citing human rights violations against Muslim Uighurs in China’s northwest Xinjiang region.